Pension and Retroactivity

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Friday May 3 2019

2015-2019/528

No 76

There have been many questions on how the retroactive wage increases will impact the pensions of those members who retired after December 31, 2017 (RSMC) or January 31, 2018 (Urban Ops) and those planning on retiring before the arbitrator’s decision is implemented. Canada Post has confirmed that the retroactivity shall apply to both wage increases and pension calculations.

Retroactive Wage Increases

Any members who have or will retire in the above mentioned period, will receive a retroactive payment, based on the wage increases for each day during this period that they received pay from Canada Post. There will be pension contributions withheld from this payment. Both CUPW and CPC have proposed wage increases for each year of the new collective agreements. However, we do not know yet how much those wage increases will be, as they shall be determined by the arbitrator.

Pension Retroactivity

Those who retired after December 31, 2017 (RSMC) or January 31, 2018 (Urban Ops) will have their pension entitlement recalculated based on the wage increases and will receive a retroactive payment on their pension